JPMorgan’s strategist downgraded its recommendation on equity allocation as the firm saw downside risk for the stock market between now and the end of the first quarter of 2023 due to a soft economic outlook.
The firm downgraded stocks from “overweight” to “moderate underweight” and also trimmed its risk exposure in commodities, while increasing its allocation to corporate bonds and cash.
Marko Kolanovic, JPMorgan Chase & Co. strategist, reiterated his forecast that the S&P 500 Index will once again test its previous lows in early 2023 as financial conditions continue to tighten and monetary policy turns even more restrictive, while the economy enters a mild recession.
The index was down at 3,577 points in October 2022.
